This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.

Simplified GAAP for Private Companies

Proposed alternatives to GAAP include simpler approaches to accounting for some interest rate swaps.

This week, the Private Company Council (PCC), formed by the Financial Accounting Foundation (FAF) to work with the FASB, announced that it is moving forward in proposing alternatives to the U.S. Generally Accepted Accounting Principles (GAAP) for privately held companies. It has tentatively proposed changing GAAP guidelines to:

Include two simpler approaches to accounting for certain types of interest rate swaps when a private company intends to economically convert the interest rate on its debt,

Save private companies from having to separately recognize certain intangible assets acquired in a business combination, and

Allow for amortization of goodwill and a simplified goodwill impairment model.

Treasury & Risk

Treasury & Risk is an online publication and robust website designed to meet the information needs of finance, treasury, and risk management professionals. Our editorial content, delivered through multiple interactive channels, mixes strategic insights from thought leaders with in-depth analysis of best practices, original research projects, and case studies with corporate innovators.